updated 03:55 pm EDT, Wed May 17, 2006
iPod revamp, Apple growth
A complete revamp of Apple's iPod line will be a key growth driver for Apple in the second half of 2006, according to analyst firm Bear Stearns. "While investors are anxious about iPod data points, we would use the near-term weakness as a buying opportunity," analyst Andrew Neff wrote in a report after meeting with management from Apple. "We came away optimistic about Apple's outlook for the second half of 2006 with potentially a complete refresh of the iPod, 'true' video iPod and other new product launches, though timing is hard to call," Neff said. Neff suspects the "true" video iPod will be offered as a complimentary product to iPods, according to a report from Forbes.com.
An iPod phone also appears to be in the works, according to the analyst, although timing is still uncertain. Neff maintained an "outperform" rating on Apple shares and a $94 price target, and expects the company to report earnings of 48 cents on revenue of $4.6 billion for the fiscal third quarter.